Agility Health Pitch Deck Teardown: A Consolidation Play

Agility Health Investor Presentation: March 2017 Teardown

The Agility Health deck from March 2017 is a comprehensive look at a mid-market healthcare consolidator. At this stage, the company was moving beyond a regional player into a North American platform, utilizing a mix of service contracts and owned clinics. The deck is structured to appeal to institutional investors, focusing heavily on scale, infrastructure, and the 'roll-up' opportunity in the fragmented physical therapy market.

Slide 1: Title Slide

The presentation opens with a clean, corporate title slide. It identifies the document as an 'Investor Presentation' dated March 2017. The branding includes the logo and the tagline 'Serving Together. Better.' This sets a professional, albeit standard, tone for a healthcare services company.

Slide 3: Who We Are

This slide serves as the executive summary. It defines Agility Health, Inc. as a leading healthcare provider focused on physical rehabilitation. Key service lines listed include physical therapy, occupational therapy, athletic training, and speech therapy. The slide uses a checklist format to highlight growth in revenues, the fragmented nature of the industry, and their 'experienced leadership.' A photo of a modern, lit-up facility provides a visual anchor for the physical nature of the business.

Slide 5: Physical Rehabilitation Services - Overview

Slide 5 provides the scale of the operation. It claims the company is one of the leading providers in North America. The metrics are impressive: 1+ million annual patient visits, 1,100+ employees, and 145+ locations. A map of North America highlights 20 U.S. states and parts of Canada in red, showing a heavy concentration in the Midwest and West Coast. Crucially, it mentions 'Proprietary operating software,' which is a key value driver for investors looking for scalable platforms rather than just a collection of clinics.

Slide 7: Business Segments

This slide breaks down the revenue mix, which is vital for understanding the company's risk profile. The four segments are:

Outpatient Clinics: 56 sites, $31.3M LTM Revenue (50% of total). · Industrial (Work-Fit): 31 sites, $5.6M LTM Revenue (9% of total). · Hospitals: 36 sites, $8.0M LTM Revenue (13% of total). · Long-Term Care: 25 sites, $17.4M LTM Revenue (28% of total).

This diversification shows that while clinics are the core, the company has significant exposure to institutional contracts, which typically offer different margin profiles and contract lengths.

Slide 9: Financial Summary ($US)

This is the most data-dense slide in the deck, providing a four-year lookback (2013-2016). Total revenue grew from $60,527,877 in 2013 to $63,021,546 in the LTM ending Sept 30, 2016. However, the red circles on the slide draw attention to a slight decline in performance: Gross Profit fell from $13.7M in 2015 to $12.8M in the LTM period. Clinic Level EBITDA also saw a contraction from $12.2M (19.7% margin) in 2015 to $9.6M (15.3% margin) in the LTM period. The slide provides a granular breakdown of costs, including salaries, facility costs, and 'Provision for Bed Debts,' which stayed relatively stable at $932,038.

Slide 11: Medic Holdings - Orthotics Overview

Slide 11 focuses on the Canadian business unit. Medic Holdings is described as a Canadian unit focusing on outpatient orthotics and foot care. It includes manufacturing capabilities in Hamilton and Montreal, producing over 60,000 pairs of orthotics per year. This slide highlights a shift from pure service to a product/manufacturing hybrid, which can often command higher multiples if scaled correctly. The unit employs 120+ people and operates 12 clinics in Ontario and Quebec.

Slide 13: Highlights

This slide acts as a 'Why Invest' summary. It lists a TTM Revenue of CDN$96.5M and TTM EBITDA of CDN$8.3M (note the switch to Canadian dollars here, likely for the TSX audience). It mentions an EV/TTM EBITDA multiple of 6.7X. The slide emphasizes a 'Scalable Growth Platform' and a 'Visible, near-term acquisition pipeline' that could potentially increase EBITDA by 50%. It also notes the intent to 'Uplist to TSX,' indicating the company's capital markets strategy.

Slide 15: Growth Strategy

Same Clinic Improvements: Referral volume and cross-selling. · De Novo Clinic Expansion: Clustering new clinics for market density. · New Hospital Contracts: Securing new contracts in existing and new markets. · New LTC Contracts: Leveraging reputation to add customers. · Expanded Sales Platform: Developing bundled service offerings. · Expand Work-Fit Program: Marketing to self-insured employers.

This is a standard but thorough growth plan for a healthcare services firm.

Slide 17: Management Team

The team slide lists seven key executives. Steven Davidson (Chairman/CEO) and Gene Miyamoto (COO) both bring 33 years of experience. Telfer Hanson is listed as President and Interim CFO, bringing 25 years of investment banking experience—a critical role for a company focused on M&A and public listings. The presence of a General Counsel (Michael Daray) and a VP of Corp Development (Wayne Cockburn) further reinforces the company's focus on acquisition and compliance.

Slide 19: Appendix

The final slide in the provided set is a simple transition slide for the Appendix. No further data is provided in this section of the teardown.

What Agility Health Does Well

Agility Health excels at demonstrating operational scale . By Slide 5, the investor knows exactly how many visits, employees, and locations the company manages. This immediately separates them from smaller, regional practices. The breakdown of business segments on Slide 7 is also a strength; it shows a sophisticated understanding of their revenue streams and demonstrates that they aren't overly reliant on a single market segment.

The inclusion of detailed financials on Slide 9 is brave and necessary. While the EBITDA margin compression is a potential red flag, providing the full P&L breakdown (including specific line items like 'Contract Labor' and 'Supplies') builds trust with sophisticated investors. It shows the management team has a firm grip on their cost drivers.

Finally, the vertical integration story with Medic Holdings (Slide 11) is a smart addition. It moves the narrative from 'we just hire therapists' to 'we own the supply chain for orthotics,' which is a much more defensible business moat.

What is Missing from the Deck

The most glaring omission in the provided slides is a specific capital ask . While it mentions an 'Investor Presentation,' there is no slide detailing how much money they are looking to raise, at what valuation, or exactly how that capital will be deployed (e.g., how many acquisitions it will fund). This may have been in the missing 10 slides, but its absence here leaves the narrative unfinished.

There is also a lack of competitive analysis . The deck mentions the market is 'highly fragmented,' but it doesn't name other consolidators or explain why Agility Health's 'proprietary software' or 'Work-Fit' program gives them a winning edge over other well-capitalized roll-ups in the same space.

Lastly, the unit economics are missing. While we see total revenue and EBITDA, we don't see the 'payback period' for a De Novo clinic or the 'average acquisition multiple' they pay for new sites. For a roll-up strategy, these metrics are the lifeblood of the investment thesis.

Founder Takeaways: What to Copy

1. Use a Geographic Heat Map: If you are a multi-site business, a map (Slide 5) is the fastest way to communicate scale and 'white space' for expansion. It makes the business feel tangible and expansive.

2. Segment Your Revenue: Don't just show one big revenue number. Breaking it down by segment (Slide 7) shows you understand your customer types and helps investors model different growth scenarios for each part of the business.

3. Highlight the 'Platform' Value: Agility Health emphasizes its 'proprietary operating software' and 'back office infrastructure.' For service businesses, the 'tech' isn't the product—it's the engine that allows you to scale without adding proportional overhead. Make sure your deck highlights this engine.

4. Be Transparent with Financials: Even if your margins are fluctuating, showing a multi-year P&L (Slide 9) demonstrates maturity. Investors will find the holes anyway; showing them yourself allows you to frame the narrative around why those fluctuations occurred.